yeah firm contingencies - so lets say £20k goes into the firm contingencies pot you then get £180k from which you need to pay tax, NI pension etc...

right?

PEP is a pretty meaningless term unless you’re a 50s cheerleader, it’s just an average and bears no relation to what is actually being paid or the split between high and low earners. AIUI it anyway, not being in PP

Points

win prizes

Exactly 

yes its the average of course but I just hadnt really thought about the fact equity partners wont presuambly be getting any sort of a salary

so if average PEP at a firm is £200k then there are going to be a lot of partners getting a lot less than £200k --- which seems pretty shit after all that hard work. Obviously if you're at Debevoise or Slaughters it looks very different 

It’s just like being a stag really, the more points you have, the greater your chance of having your pick of the females to mate with

Partners will get a monthly draw on account of their annual profits share. So if your points allocated result in 200k profit share , one would draw half that over 12 months , with the  balance payable in a lump sum at the financial year end .

As someone said quoted PEP is a sham I think DLA claim to have £1MM PEP, yet I know for a fact some equity partners are on 150k

as is nonsense when recruiters say top of equity £3 mm , so what ?

Ultra-first world problem

No he’s not he’s asking if PEP were £200k would that be the max you take home, to which the answer is no. You take home your share of the profits (your share being how much the other pigs in the trough deem appropriate all things considered)

And equally if the firm didn’t meet its forecasts  for what ever reason,your profit share could be less than a senior associate. It happens and has happened.

ok some confusion over what I was asking but thanks for responses.

basically I was just trying to make sure I had the right interpretation of earning at certain firms.

I am no longer in law, thank god. 

Getting de-equitised must be interesting.

One gets drawings each month on account of anticipated net profit and there is a calculation by which that profit is apportioned. It's rarely shared equally.

There may (one hopes) be an additional balancing payment at the end of the each accounting period.

There are, I have discovered, pretty much no firms where they operate a classic eqt lockstep these days.  the one universal tho is that a small cabal of total w**kers will take the vast slice of the proverbial pie.  so for a firm with PEP of 200k with say 25 partners, I would expect five guys (and being law they will all be guys) on 650k and 20 on about 45k.  

There will be varying degrees of carrot for the 20 dangled ever so slightly out of reach by a series of variable variables.  

thanks for collections of 6.5 mio but I am afraid your realisation was 0.2 under our realisation threshold of 85%

your leverage ratio was 27 to one, the highest in the firm!  well done!  unfortunately this meant you only did 700 chargeable hours so are not eligible to share in profit

wow you did 2,500 chargeables this year, well done!  unfortunately this caused you to fail (i) the leverage test; (2) your marketing /BD target; (3) your KH requirement; and (4) our mandatory voluntary 50 hour pro bono bonus.  your bonus is therefore contained in this email:  

(_*_)

All law firms are run by a small cabal.of senior partners. Palace revolutions happen occasionally though.

So it’s all about getting into The Cabal..

It's like the coven on rof that secretly pulls the strings of wang etc.

secret governments and whatnot.

It depends if you want to be in the cabal.There are always a few senior partners who have no interest, but are too powerful for various reasons for the cabal to mess with.

heh @ wango.  So very true...